Chapter 591: Chapter 591 Divestment and New Company
After all, the Hong Kong Electric Light Company had a history of ninety years, and after such a long period of time, it had long since ceased to be limited to the power industry.
It could be said that HK Electric Light Company was a fully diversified group of companies, and the company's business scope could be roughly divided into five parts.
The business scope of the company can be roughly divided into five parts, which are property, electricity, engineering construction and services, electrical appliances trading, and other investments and shares in accordance with the volume of the order of the five parts.
In recent years, because the property sector has gradually become hot, it is a company that wants to be in property, so Heung Yee Kiang Electric Lighting Company, which has a huge advantage, is no exception and is deeply engaged in the property sector.
The property business was originally under the direct control of the second largest shareholder and president, but after he left, the position was left vacant.
The remaining four people were all in charge of various business areas.
After listening to their introductions, Xia Yu nodded slightly and then looked at Zhou Keji, instructing, 'How is the overall situation of the company?'
Zhou Kegui and the staff of the accounting firm had done a full accounting of the assets of the Hong Kong Electric Company, and had already had an idea in their minds, so they reported with a calm expression on their faces, 'Reporting to you, Chairman, the Hong Kong Electric Company has a total asset value of HK$8.75 billion, with liabilities of HK$5.63 billion, and a net asset of HK$3.12 billion, with property assets accounting for 53.3% and electricity assets accounting for 25.3% of the total. , electricity business assets accounted for 25.5%, engineering construction and services business assets accounted for 12.4%, and electrical appliances trading ...'
Hearing this figure, Xia Yu raised an eyebrow, he did not expect the net assets of the Hong Kong Electric Company to be as high as HK$3.12 billion, which was completely out of his expectation.
Although he knew that most British companies nowadays had market capitalisations lower than their actual values, he hadn't expected that after the Wharf incident, the company would still be so outrageous, so he could imagine that there was gold everywhere, depending on whether or not he had the ability to eat it.
Purchase the whole company, only spent 2.27 billion Hong Kong dollars, that is to say, just from the net assets, his acquisition will have 8.5 billion Hong Kong dollars in profit.
Not to mention the fact that the value of a company is not purely based on its net worth, but also on other hidden values such as industry influence and volume.
However, Xia Yu had learnt that the main reason why HK Electric had so many assets under the Standard Accounting Firm's accounting was because of the value of real estate, such as land and surface buildings.
Heung Kong Electric Company, after all, owned the electricity franchise on Hong Kong Island, and had acquired a large number of plots of land for the construction of a power plant, as well as land for ancillary factories and facilities for the power plant, in the last century.
Over the past 90 years, the power plant has undergone expansion, relocation and other changes, the company's land is more and more, not decreasing, because the Hong Kong Electric Company is a British-funded enterprises, coupled with its original power plant site in the urban area or near the urban area, taking into account the overall planning of the city, so the Hong Kong Government has several times to approve the change in the nature of the land, from industrial land into a commercial land, the value of the skyrocketed.
It is precisely because of this huge advantage that the Hong Kong Electric Company is thinking of entering the property sector.
After all, with such a huge advantage, as long as the operator wasn't a fool, it was of course impossible to leave a big gold mine unchecked.
But now everything was cheap for Xia Yu.
'Okay, I understand the situation. For the sake of the company's good development, we're going to reorganise the company.'
Xia Yu said with a straight face, and everyone immediately looked at him with serious expressions.
'Xiangjiang Electric Light Company has now gone off the rails, and has fallen far behind China Light and Power Company in the electricity business it started with, although there are reasons for the franchise area, but undeniably, the most important reason for this is that the company's main focus has been placed on the property business.'
'Next, the property-related businesses are all divested and absorbed by the Jiuding Property Group.'
'Shihao, step up the pace, but the prerequisite is stability, understand?'
'Understood!'
Liu Shihao replied in a loud voice, his heart surging with blood.
The total assets of the property business of Hong Kong Electric Company had reached more than 4 billion Hong Kong dollars, although the liabilities were also numerous, but undeniably, the volume of the property industry alone was equivalent to the volume of a large property company in Hong Kong.
Now that it has been directly annexed by JD Property Group, it will make JD Property Group's strength soar far beyond that of Henderson Land Development, New World Development, and Cheung Kong Holdings, etc. As for Han Tianze and the other original companies, they are still in the same position.
As for Han Tianze and the other original executives, although they were in awe, they still obeyed Xia Yu's orders.
Although they felt pity, this was the boss's will, no one could stop it, not even the person in charge of the property business, and even less came out to voice their opinions.
But after this start, they were beginning to worry about their own fate.
Xia Yu's eyes looked towards Han Tianze, and said calmly when he was apprehensive, 'Han Tianze, from now on you'll be the general manager of the company, in charge of the entire group of companies, and directly in charge of the power business.'
'Yes!'
Han Tianze was pleasantly surprised and responded in a loud voice.
Xia Yu nodded slightly, then looked at Liu Hong and said to him, 'The engineering construction and service sector you are in charge of has two major sections, one is the power plant construction, grid laying and service sector, and the other is the service to the property construction sector.'
'The property construction sector is all subsumed into the Jiuding Property Group, in the future, you will manage the power related engineering construction and service business and assist Han Tianze in taking care of the company, understand?'
Liu Hong sighed in his heart that his rights had shrunk drastically, but he didn't dare to complain, he was still able to work as an executive which was already very good, so he respectfully replied, 'Understood!'
'As for you ...'
Looking towards Song Hai, Xia Yu hesitated for a moment and fell into thought, leaving Song Hai with his heart in his throat.
At that moment, Xia Yu was heard saying, 'The electrical appliances trading business, acting as an agent for the general distribution rights of companies such as Siemens of Germany and Whirlpool of the United States in Xiangjiang, this is a great advantage, but the disadvantages are also obvious, that is, focusing on being a general distributor, belittling the electrical appliances retail sector, the discourse is not heavy, and the profits are too low.'
'The terminal electrical appliance retail sector is a big market, as long as the volume goes up, it is able to counter-pressure the suppliers, so it must be operated vigorously.'
'The electrical appliances trading sector is independent and becomes a wholly owned subsidiary of the Jiu Ding Retail Group, the name is Jiu Ding Electrical Appliances Sales Company Limited, you take up the position of general manager, I'll give you a task, open six electrical appliances retail malls in Hong Kong and Aomen in half a year's time and, most importantly, build a good supporting after-sales service system. '
Song Hai mixed feelings, happy because he became the general manager of a company, rights and freedom increased greatly, and see the situation boss will strongly support him.
But it is also because of this to feel sad, or pressure.
Half a year in Hong Kong and Macao to open six electrical appliances retail malls, certainly not the kind of small electrical appliances retail shops, at least electrical appliances should be a complete range of varieties, so that's just, the most difficult thing is to improve the after-sales service system, the maintenance staff alone is difficult to find, but also to ensure that the level.
But despite the pressure, since his boss valued him, he couldn't let his boss Xia Yu down, so he took a deep breath and solemnly answered, 'I promise to complete the task!'
Xia Yu was also aware of the difficulties involved, and said in a serious tone, 'You don't have to worry about the funds, the electrical retail industry focuses on service, so the after-sales service system needs to be put in more effort, so don't let me down!'
'Yes!'
Song Hai puffed up his chest and answered again.
Xia Yu had high expectations for Jiuding Electrical Appliances Sales Company Limited, which was why he had focused on building the after-sales service system.
As long as the retail terminals were built and shaped, he could enter the electrical appliance manufacturing industry at any time, and then with the help of a well-built retail system and after-sales service system, he would soon be able to build a new brand of electrical appliances into shape, and that was what he was looking at.
Next came the other businesses in which he had invested his stake. Xia Yu divested himself of them according to the list that Zhou Keji had compiled, stripping out the unrelated businesses and informing the major companies under his banner to take them over when the time came, leaving behind only the parts that were related to the electricity business.
In this way, the Heung Kong Electric Light Company returned to what it was at the beginning, becoming a single power company, and the company's assets shrunk drastically, leaving it with only over HK$2 billion in assets, most of which were still real estate such as power plants and power grids.
In Xia Yu's plans, the Hong Kong Electric Company had been engaged in the power industry for ninety years, with absolutely no problems in terms of technology and management and operations, and a deep heritage, so it was an absolute waste to be confined to a single location on Hong Kong Island in Hong Kong.
Xia Yu was prepared to use this as a base point for the company to break out of Hong Kong, move towards Asia, and enter the world's electric power sector.
It was precisely because he had taken so much into consideration that he would not allow the Xiangjiang Electric Light Company to be duplicitous.
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